In our newest Roundtable Talk, Elite Client Consultant Kem Taylor and President David Grau Sr., JD, discuss the importance of time when it comes to planning, executing, and evolving your succession plan. During the conversation they cover examples of how FP Transitions has helped business owners navigate any changes to their plan including accelerating the timeline, adjusting the next-generation ownership team, and falling back to “Plan B”–selling the business.
The transfer of ownership to a team of next generation talent allows a business to leverage the individual strengths and fresh energy of a younger generation. As a new advisor, ownership provides stability, equity stake, and voice in the future of the business. As a founder, incorporating this team elevates your business, secures longevity, and sparks a new level of growth. The arrangement creates a win-win opportunity for both the founder and the next generation owners.
In our new Roundtable Talk, Elite Client Consultant, Kem Taylor, and our President and Founder, David Grau Sr., JD, discuss the process of going from next generation advisor to next generation owner and the common questions that come with it. They explore the benefits for both founder and next generation owners as well as the importance of communication between the generations for a successful integration.Click here to watch the full, unscripted discussion.
Independent financial advisors face an almost overwhelming set of challenges, but with challenges come opportunities. Many of these challenges fall into areas of:
- Mergers & Acquisitions
- Growth & Profitability
- Talent Retention
- Succession Planning
These opportunities and challenges are often interrelated. Tackling one challenge often helps solve another, thereby strengthening your business in other ways. A successful acquisition is supported by a strong enterprise that is capable of handling exponential growth, and building a strong enterprise requires the incorporation of next generation talent. Retaining and nurturing next generation talent is made possible with the proper compensation systems, and maintaining an effective compensation system demands business profitability. Bottom-line profitability increases when it is properly balanced with top-line growth. Finally, to bring it all together, growth is supported by building a strong, sustainable enterprise.
In this new webcast, President and Founder David Grau Sr., JD, discusses the top challenges and opportunities of the profession and how they can be addressed using an end-to-end, integrated strategy.
In our new Roundtable Talk, Founder and President, David Grau Sr., JD, and Elite Client Consultant, Kem Taylor, CBEC®, explore internal succession and describe how both the succession process and business growth can benefit from multigenerational experiences and knowledge from all owners.
- Acknowledging the "time" factor – having enough time to plan for, implement, and make adjustments to a gradual, internal transition of ownership
- Helping next generation advisors understand the benefits and responsibilities of ownership
- Recognizing that each succession path is different
- Exploring "where you are" and "where you're going" before jumping into the process
The last few years I’ve been unable to attend the FPA annual conference due to personal commitments. It was great to be back on site for this year’s event in Chicago.
The Future of the Industry
As an Official Sponsor of the Next Generation, we are tapped into what young advisors are doing, hearing, and saying. It’s an energizing group to be around—the future advisors I met in Chicago view financial planning as a calling as well as a rewarding career. It does strike me as a bit ironic that the “NexGen” community stops at 37 years old, when the average age of a graduate in a financial planning program (as shared during a conversation with university staff) is 41. I suspect these more seasoned career changers will have an easier time making their way into the industry, but it’s important to incorporate the youngest professionals into existing businesses, as they will impact the industry for decades, if they don’t get discouraged. This new generation of advisors are more dynamic and driven than they’re often given credit for, and these savvy younger professionals will continue pushing the status quo to create opportunities for themselves.
Many small financial advisory firms don’t have a Human Resources Department. So when it comes time to seek out, hire, train, and develop employees, those tasks usually fall to the owner. They must figure out where to find candidates, what to ask in an interview, how much to pay, how to set up a training plan, and how to keep them engaged and motivated. That research takes valuable time away from the owner’s other obligations and productivity.
Working at a financial services firm can be a rewarding choice for the next generation of advisors. You can have real impact in people’s lives as you help clients set their financial goals and see them succeed over time. It is an environment where there is constant change and continued opportunities for learning. And, the financial services industry offers a lot of choice in terms of specialization, type of firm and location. It is important to find the right company and team to work with to put your career on the right path.
During a job interview with a potential firm you will have the opportunity to ask your own questions about the business and the team. Asking the right questions shows you are intelligent and engaged, in addition to providing you with critical information to help you make the right choice for your career.
You will, of course, have questions to ask specific to your own goals and concerns, but here are three relevant to every advisor's career that should be on your list: